LONDON: The UK government on Sunday unveiled plans to give carmakers more flexibility in transitioning to electric vehicles in a bid to boost the sector in the face of “global economic headwinds”.
The global auto sector has been hit hard by Washington's sweeping new tariffs, which impose a 25 percent levy on vehicles imported into the United States.
In an immediate sign of the fallout, UK luxury car manufacturer Jaguar Land Rover said on Saturday that it would “pause” shipments to the US in April as it addressed “the new trading terms”.
UK Prime Minister Keir Starmer on Sunday said he was prepared to directly intervene to support affected sectors, and later unveiled plans to help the auto industry.
These included confirmation that all petrol and diesel car sales will be outlawed by 2030, with hybrids to be sold until 2035 and small manufacturers exempt.
The government has already announced £2.3 billion ($3.0 billion) to boost the production of electric vehicles, and on Sunday said that it would ease rules on how manufacturers can achieve the 2030 target.
Under the new plans, carmakers can fall below the annual target for producing electric vehicles manufactured until 2026, if they make up for that shortfall before 2030.
“Global trade is being transformed so we must go further and faster in reshaping our economy and our country,“ said Starmer.
“So today I am announcing bold changes to the way we support our car industry.
“This will help ensure home-grown firms can export British cars built by British workers around the world,“ he added.
The package of measures will exempt small and micro-volume manufacturers, including supercar brands such as McLaren and Aston Martin, from the targets.
Vans with an internal combustion engine will be allowed to be sold until 2035.
Support for the UK car industry, which employs 152,000 people and adds £19 billion annually to the economy, “will be kept under review as the impact of new tariffs become clear”, added the government.
